March 25, 2015 – The Washington Division of Credit Unions (DCU) has announced that it will begin using CAMEL component “S,” which stands for “Sensitivity to Market Risk” (interest rate risk), for examinations on May 1.

The Washington DCU will separate the current “L” component rating into two component ratings of “L” for liquidity risk and “S” for interest rate risk in order to provide better information to credit unions. Additionally, asset liability management will be mainly factored into the “L” component rating.

The DCU will continue to use the same examination procedures for liquidity risk and interest rate risk, and will not change its pre-exam letter to implement this change.